THE CANADIAN PRESS

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CALGARY - Flights on Canada's two largest airlines had fewer empty seats in August compared with a year ago, as Air Canada (TSX:AC.B, TSX:ACE.B) and WestJet Airlines Ltd. (TSX:WJA) reported higher load factors on Thursday.

WestJet reported a load factor, a measure of how much of the airline's total seating capacity was used, of 88.4 per cent for the month, up from 88 per cent a year ago, even as the Calgary-based carrier increased capacity by 21.9 per cent.

Passenger traffic at WestJet rose even faster than capacity, rising by 22.4 per cent to 1.394 billion revenue passenger miles from 1.139 billion RPMs in August 2007.

Available seat miles, a measure of the airline's capacity, rose by 21.9 per cent to 1.577 billion from 1.294 billion ASMs a year earlier.

"We are extremely pleased with our record load factor for August," WestJet president and CEO Sean Durfy said in a statement. "Year over year, we flew over 145,000 more guests this August."

Meanwhile, Air Canada reported a load factor of 85.4 per cent, up from 84.4 per cent a year ago, while Canada's largest carrier cut capacity by two per cent.

Available seat miles at Air Canada totalled 5.624 billion, down from 5,739 ASMs, while revenue passenger miles totalled 4.805 billion, down from 4.844 billion a year ago.

Jazz (TSX:JAZ.UN), from which Air Canada buys capacity, reported a load factor of 73.2 per cent, down from 77.3 per cent a year ago as flights to the United States reported sharp increase in the percentage of empty seats.

Capacity at the regional carrier was 511 million ASMs, down from 533 million, while traffic was 374 million RPMs, down from 412 million RPMs in August 2007.

"Demand in North America, as expected, continues to soften as the industry adjusts fares to reflect the ongoing impact of high fuel prices," Air Canada president and chief executive Montie Brewer said in statement.

"However, through prudent capacity management we were successful in adjusting operations effectively."

Air Canada announced in June it planned to cut up to 2,000 jobs at the end of this year as it sharply reduces capacity to deal with the rising cost of fuel and warned there were likely more cutbacks to come.

The airline said it planned to cut capacity by seven per cent from its fall and winter schedule.

Jazz Air announced in July it was cutting 270 of its roughly 5,000 employees and planned to reduce services by five per cent of its current capacity later this year.